Karnataka seeks Centre’s help to develop Bulk Drug Park

Last Updated13/08/2021

Karnataka sought the Centre’s approval for the development of the Bulk Drug Park at Kadechur-Badiyal Industrial Area in Yadgir district under the Centre’s Promotion of Bulk Drug Parks Scheme.
The Karnataka government has notified more than 1,500 acres of land for the development of the proposed Bulk Drug Park at Kadechur-Badiyal Industrial Area.
The park will help promote industries and attract investors and give fillip to tier II and III cities in the State.

The Indian pharmaceutical industry is the 3rd largest in the world by volume.
Despite this achievement, India is significantly dependent on import of basic raw materials, viz., Bulk Drugs that are used to produce medicines.
It is observed that in some specific APIs the import dependence is 80 to 100%.
Any disruption in the supply could jeopardize the Indian pharma sector and had an adverse impact on drug security in India.

A bulk drug also called an active pharmaceutical ingredient (API), is the key ingredient of a drug or medicine, which lends it the desired therapeutic effect or produces the intended pharmacological activity.
For example, paracetamol is a bulk drug, which acts against pain. It is mixed with binding agents or solvents to prepare the finished pharmaceutical product, i.e a paracetamol tablet, capsule, or syrup, which is consumed by the patient.

APIs are prepared from multiple reactions involving chemicals and solvents.
The primary chemical or the basic raw material which undergoes reactions to form an API is called the key starting material, or KSM.
Chemical compounds formed during the intermediate stages during these reactions are called drug intermediates or DIs.

It is a space with common infrastructure facilities for the exclusive manufacture of APIs or DIs or KSM.
These parks are expected to bring down manufacturing costs of bulk drugs in the country and increase competitiveness in the domestic bulk drug industry.
In March 2020, the central government has approved the scheme on Promotion of Bulk Drug Parks for financing Common Infrastructure Facilities in 3 Bulk Drug Parks.

The GOI has decided to develop 3 mega Bulk Drug parks in India in partnership with States.
The government of India will give Grants-in-Aid to States with a maximum limit of Rs. 1000 Crore per Bulk Drug Park or 70% of the project cost of Common Infrastructure Facilities, whichever is less.
In case of hilly states and North East Region, the grant-in-aid would be Rs.1000 Crore per park or 90% of the project cost of Common Infrastructure Facilities, whichever is less.
Parks will have common facilities such as solvent recovery plant, distillation plant, power & steam units, common effluent treatment plant etc.
A sum of Rs. 3,000 crore has been approved for this scheme for the next 5 years.
The scheme will be implemented by State Implementing Agencies (SIA) to be set up by the respective State Governments.
Himachal Pradesh is one of the states, selected for the allotment of a bulk drug park under a central government scheme in 2020.

reduce the manufacturing cost of bulk drugs in the country and dependency on other countries for bulk drugs.
boost domestic manufacturing of critical KSMs/Drug Intermediates and APIs
attract large investments in the sector to ensure their sustainable domestic supply
significant additional employment generation